In a first-of-its-kind enforcement, the Federal Trade Commission has imposed a $1.5 million penalty on telehealth and prescription drug discount provider GoodRx Holdings Inc. for sharing users’ personal health data with Facebook, Google and other third parties without their consent.
Under a settlement, California-based GoodRx also accepted that it will be prohibited going forward from sharing user health data with third parties for advertising purposes, the FTC said. GoodRx admitted no wrongdoing and said in a blog post that it settled “to avoid the time and expense of protracted litigation.” The agreement is pending federal court approval.
Consumer protection advocates hailed Wednesday’s announcement as a potential game-changer that could seriously curtail a little-known phenomenon: The trafficking in sensitive health data by businesses not strictly classified as health care providers.